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What went wrong at Techstars

168 点作者 josh_carterPDX大约 1 年前

18 条评论

jillesvangurp大约 1 年前
I mentored in the Techstars program in Berlin a few years ago. Nice people and they mean well. But in the end the program I mentored in was a dud. As far as I know none of the companies were invested in and the upfront screening wasn&#x27;t great either. I.e. it was obvious to me early on in the program that there were no unicorns anywhere in sight.<p>Not that I&#x27;m an expert on spotting those of course. But as it turns out, my skepticism was justified as there were no investments at the end of the program and few of these companies (if any) survived very long after. I was kind of sad about that because there were a couple of founders I really liked there.<p>Several of the companies actually died early in the program because of the usual founder issues, or the lack of coherent plan. Apparently, none of these issues came up during screening.<p>I&#x27;ve stepped back a little from mentoring (at least for them) because it&#x27;s kind of time consuming and I got the vibe that Techstars took my time a little too much for granted. You get invited to some events and I got the hoody (which is a nice one) and that&#x27;s about the extent of their appreciation or engagement. The promise of a great network (to both mentors and founders) is hard to live up to if you don&#x27;t nurture that network. And there&#x27;s not a lot of that nurturing happening lately.
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caseysoftware大约 1 年前
I was a mentor for the Austin program for every year but the last (2013-2022) until they recently closed it.. and &quot;top mentor&quot; a half dozen times. I also worked with a number of other programs once covid hit.<p>Overall, I had a blast, made some great friendships, and did most of my angel investing in companies I worked with through the program. One died, a handful were acquired, and the rest are still operational.<p>That said, I don&#x27;t think that Techstars problem was only chasing the cash. I think it came down to the problem they were solving disappeared and they didn&#x27;t shift.<p>Rewind to 2008 and the number of operators who had &quot;been there, done that&quot; successfully and were willing to share their time was exceptionally rare. By 2013 when they came to Austin, it was still uncommon but there were a few pockets here and there. Techstars was exceptional at collecting and coordinating them. Fast forward to 2018&#x2F;19 and the sheer volume of people who had useful experience and the ability to share it was massive.<p>One of the things the article nailed is the need for a good Managing Director (MD). If you had a good one, they were able to leverage those local (and some remote) ecosystem to help validate ideas, streamline the founders&#x27; thinking, and focus them on the goals. If you had a weaker MD, sucks to be you. Techstars HQ&#x27;s only role in that was picking the MD. Beyond that, you were on your own.<p>When covid hit, that ecosystem shifted and suddenly the number of people with experience and the ability to share it exploded, money flowed like water, and people&#x27;s mindset shifted. The Techstars program didn&#x27;t iterate and even lost the camaraderie that they&#x27;d fostered for years. When they took strong political stances for and against different groups, a bunch of mentors drifted away.<p>On the other side of covid, now we have way more people with experience, way less money, and way fewer social bonds. Techstars doesn&#x27;t address those needs.
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yaseer大约 1 年前
Having been through both Techstars and YC, this article is painfully accurate.<p>Being part of both networks has been an interesting experience in culture.<p>YC culture fosters an extremely strong network of founders, even outside the bay area. In London we&#x27;re constantly pinging each other for advice - it really helps.<p>Techstars does not have this and makes little effort to do this. I remember speaking to some Techstars people in London trying to see if they might Foster more of the community here, but they had no interest in it unfortunately.<p>It&#x27;s a real shame because some Techstars programs with the right MDs had YC quality (Shoutout to Connor), it&#x27;s just the quality wasn&#x27;t distributed or cultivated uniformly. It&#x27;s heavily dependent on the MD of the program.
brianstorms大约 1 年前
After getting to know the Boulder-area TechStars people, I tried to get a TechStars &quot;chapter&quot; going in San Diego back in 2010 and like so many things about the startup world in San Diego, it just wasn&#x27;t going to happen. The San Diego M-F 9-5 lifestyle always was more important than taking over the world. Plus, in general I found mentoring San Diego tech startups to be essentially pointless: nobody listened, nobody cared, so why even bother. Finally I found the core TechStars organization to be a bunch of cats, un-herdable, no &quot;there&quot; there. I never liked the whole &quot;star&quot; thing as it reeked of &quot;rock stars&quot; and was a little too &quot;bro&quot; for me. Bottom line, it was screamingly clear TechStars was never going to compete with YC (which I&#x27;ve never been a fan of either, but at least they&#x27;re organized and determined and focused), so no surprise when it never did.
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wgerard大约 1 年前
I was part of Techstars Seattle in 2019, though we were mentored by Chris&#x27;s counterpart at Founders&#x27; Co-op (Aviel). It was also a partnership with Amazon, and I really don&#x27;t have enough good things to say about that experience even though our company ceased to exist less than a year later.<p>I&#x27;m only half-surprised.<p>I had a great experience, we learned a ton, and if anything was going to set us up for success it was our time there. Companies are mostly doomed to fail, but our time in Seattle was pretty transformative for me personally. It allowed us to refine our focus and dedicate ourselves wholly to building something people wanted (which, turns out, wasn&#x27;t that many people obviously). The support and guidance we received from Aviel, our Amazon partners, and fellow cohort members were unparalleled. Say what you want about VCs or Amazon or startup founders (and yeah there are many things to be said), but I really have nothing but great things to say about all of the individuals from our time there. Admittedly, my opinion doesn&#x27;t carry any particular importance.<p>On the other hand, I&#x27;m not surprised at all when I reflect on the actual Techstars program. Techstars, as an organization, seemed totally in the periphery for much of the program. The lion&#x27;s share of valuable advice and resources came not from the organization itself, but from everyone else.<p>Echoing another&#x27;s sentiments, the value of Techstars seems heavily influenced by location and the mentors involved. We were lucky to only be thinking about two great programs, Seattle and NYC. If we had ended up somewhere else maybe I&#x27;d be completely unsurprised.
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buf大约 1 年前
I did Techstars in London in 2013 (an early cohort there) after spending a decade in the Bay Area. Back then, it felt like the glue holding the entire program together were the founders themselves and one particularly good Techstars staff member.<p>I felt proud going through the program until I learned about the branded programs emerging &quot;Techstars Disney&quot; and &quot;Techstars Barclays&quot;. It felt like the prestige was vanishing, and I rarely mentioned it on my CV afterwards.<p>Funny though, I raised about $1M through the Techstars program, and over $10M through other VCs. The Techstars VCs were the least helpful (but this could have been the London ecosystem at the time. London, these days, is quite good when it comes to early stage, especially some of the syndicates like Ventures Together. I digress).
todd3834大约 1 年前
Techstars should have bought Indiehackers or built a community like HN. I realize Indiehackers might not be a perfect fit (bootstrap vs VC). The fact that I’m on HN just about every. Single. Day. Keeps YC top of mind way more than I could imagine it would otherwise.
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threeseed大约 1 年前
Their deal seems pretty bad and very uncompetitive with YC:<p><a href="https:&#x2F;&#x2F;www.techstars.com&#x2F;newsroom&#x2F;investment-terms" rel="nofollow">https:&#x2F;&#x2F;www.techstars.com&#x2F;newsroom&#x2F;investment-terms</a>
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subpixel大约 1 年前
A year or so ago I noticed that an Ivy League finance guy I used to know, who had no experience with technology, had moved to an attractive foreign locale to lead a Techstars program. I recall thinking &#x27;nice job if you can get it&#x27;.
colesantiago大约 1 年前
I see no reason founders should to go to VCs any more, these days if your startup isn’t able to become make money in a few years there isn’t any point to the startup anymore.<p>The days where VCs just fund anything is over and thr effects of post-ZIRP are kicking in with the closure of these funds.<p>Time for all startups to make a profit instead of trying to go from round to round and gamble and then inevitably shut down or get sold for scraps (if lucky)
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itsoktocry大约 1 年前
&gt;<i>Seattle program alumni like Remitly, Outreach and Zipline are regularly held up as evidence that Techstars can produce billion-dollar outcomes for both founders and investors, something that has happened less and less often in recent years.</i><p>Zipline looks cool, tough space to compete with Amazon though. The other two I&#x27;ve never heard of.<p>What makes these &quot;billion dollar&quot; successes? It looks to me like like Remitly is public, and down 60% since IPO. Who won here, besides insiders who cashed out? Certainly not current shareholders.<p>The tech world has a strange way of measuring success. The author is conscious of (and mentions) ZIRP implications, but doesn&#x27;t tie it to the their own work. VCs trading insider shares at escalating valuations isn&#x27;t real value.<p>Edit: I think my comment sounded harsher than I intended. These companies <i>are</i> successful, in that they exist and are delivering product to consumers. That&#x27;s great. But &quot;billion-dollar&quot; outcome is a stretch in the face of ZIRP. How much value is there net of investment?
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neom大约 1 年前
TS is heavily dependent on the MD as the comments have alluded. Fingers crossed Moisey comes on and tells the DigitalOcean TS story because it&#x27;s a great one, but my understanding is Jason Seats (now a vc) the MD for TS Cloud was absolutely fantastic. Alex Iskold (now a vc) , TS NYC, Fantastic and Chris DeVore (now a vc) the guy who wrote this, fantastic. Then you look at TS Seoul and others, I&#x27;ve never heard of anyone having a good experience. With TS or <i>any</i> accelerator&#x2F;incubator you should be VERY discerning about why you&#x27;re doing it, not just do it because it&#x27;s <i>a way to get going</i>.
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utdiscant大约 1 年前
Having a simple clear focus is hard to undervalue. Since doing YC 6 years ago there has never been a second of doubt about the priorities (imo).<p>YC is there to make money for its investors. And the way to do that is to invest in the best startups and make them huge.<p>The only source of conflict then comes from YC vs. the startups. For example, do you enforce strict legal structures on all companies. And here the dominant priority is of course YC itself. But this is expected, and given the rationality also easy to work with.
boomskats大约 1 年前
A tangentally relevant story.<p>My only experience of Techstars was a chance introduction in 2015 to Jon Bradford, who iirc built Techstars Europe. Back then I ran a 5 person startup split across London and Serbia, targeting enterprise with an observability tool for data science &#x2F; data engineering teams.<p>It was mid-2015 and we were a couple of years in, boostrapped, and had just landed our first sale (to a big 6 energy provider in the UK). One day, as I was walking back to Waterloo Station from our WeWork on the Southbank, I struck up a random conversation with someone who also happened to be headed in the same direction, incidentally also ran a startup, had been through Techstars&#x27; programme and was very impressed with their experience. They suggested I speak to Jon, made the intro that evening, and I ended up speaking to him a day or two later.<p>When we spoke, I opened on autopilot with the usual who&#x2F;what&#x2F;why&#x2F;how elevator, explaining that I ran the commercials out of London but that the rest of my dev team was based in Nis, Serbia.<p>&quot;Oh Nis, yeah I know it. On the way from Belgrade to Sofia, right? Yeah, I know it well.&quot;<p>I remember having to check myself. For context, Nis is a little known city of 200k people in Southern Serbia, dwarfed in popularity by Belgrade or Novi Sad. It&#x27;s also my home town, where I spent the first 10 years of my life. I&#x27;d lived in the UK for 20 years at this point, and had told my origin story to probably a couple of thousand people, yet this random VC bloke was the first one to not only have heard of the place, but to take a genuine interest in it and the local tech scene (it turned out that he knew it because one of Techstars EU&#x27;s first successes, Petcloud, also had a presence there).<p>Pretty early on in that conversation, it was clear to Jon that we were far too far along in our journey to be interesting to Techstars, and he told me as much. It didn&#x27;t stop him from talking to me for almost an hour though. He gave me a bunch of advice and offered to introduce me to a number of very relevant contacts (which looking back I could have taken way better advantage of had I not been obsessed with our sales pipeline).<p>I know this post has ended up like some kind of weird eulogy, but of the hundred or so VCs I must have spoken to in my life, &#x27;Jon from Techstars&#x27; still stands out as the most memorable and genuine by some margin - a very atypical VC in my experience. I&#x27;m not sure how beneficial those qualities were for the long term success of Techstars, especially reading some of these comments, but I do remember feeling almost disappointed that I finally had customers because it meant we weren&#x27;t eligible for Techstars. I still feel a little disappointed almost ten years later, so I guess they must have had something there.
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mooreds大约 1 年前
<a href="https:&#x2F;&#x2F;www.techstars.com&#x2F;newsroom&#x2F;techstars-2-0-supercharging-founder-success" rel="nofollow">https:&#x2F;&#x2F;www.techstars.com&#x2F;newsroom&#x2F;techstars-2-0-superchargi...</a> might be worth reading for the TechStar&#x27;s org perspective.
fijiaarone大约 1 年前
Here is a a key problem:<p>“It began with an effort to extract “sponsorship” dollars from local service providers: the lawyers, accountants, recruiters and PR firms that cater to startups.”<p>The YCombinator strategy was to give founders money and get them to focus on building a product.<p>Techstars, on the other hand, sought to extract money from founders to support their sponsors to nickel and dime dreamers and bog them down with time wasting distractions like articles of incorporation and formal business plans and commercial bank accounts and press releases —- because these are the vanity services their sponsors provide. You feel like you are building a company when you consult a lawyer and accountant creating an S-Corp and delegating shares.<p>But Y Combinator has had direct access to the unlimited fount of free money created by zero interest rates so they only needed to appease the vultures capitalists with pump and dump schemes.<p>Both methods are flawed, even if the stated aims of the organizations are noble.
QuantumG大约 1 年前
It used to be about the music!
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twic大约 1 年前
&gt; By making corporate funders, and not startup founders, their primary customer, Techstars built a centrally-controlled sales- and operations-driven culture that made startups the product, not the customer. As soon as the top tier of startup founders figured out that YC had their interests at heart in the way that Techstars once had, but no longer did, the game was over.<p>Enshittification strikes again!